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IN THE OFFICE OF COMMISSIONERDEPARTMENT OF TRADE AND TAXESGOVERNMENT OF N.C.T. OF DIELHI
VYAPAR BHAWAN, NEW DELHI
No.341/CDVAT/2013/ LI-& Dated: '2-9' J J, 2-013
M/s. L.G. Electronics India Pvt. Ltd.,A-27, Mohan Co-operative. Indl. Area,Mathura Road,New Delhi.
ORDERPresent for the Applicant Sh. B. Lakshmi Narasimhan, Counsel
Sh. Amar Pratap Singh, CounselSh. T.C. Sharma, Departmental
RepresentativePresent for the Department
The above named applicant filed an application on 13/06/2013 under
section 84 of Delhi Value Added Tax Act, 2004 (hereinafter referred to as the
"said Act") and the question put up for determination under the aforesaid
provision of law is as under: -
CCWhatis the' rate of tax on LED and LCD monitors under the DVATAct and whether LED and LCD monitors are classifiable underentry 41A (3) Schedule III as 'monitor' - Central Excise Tariff Act,1986 tariff heading 8471 and accordingly taxable @5%?"
2."
The application has been preferred in the prescribed format DVAT-42
and the requisite fee of Rs.1000/- paid through demand draft No.
815566 dated 13.06.2013 of Punjab & Sind Bank and No.O15558 dated
13.06.2013 ofHDFC Bank.
3. M/ s. L. G. Electronics India Pvt. Ltd., is a registered dealer having TIN
07230192357. The Company manufactures Liquid Crystal Device (LCD)
..and Light Emitting Diode (LED) monitors in India and selling the same
'in National Capital Territory of Delhi and other parts of the country.
The firm has mentioned that the product has been classified and
assessed under the heading of 84716030 Iof the Central Excise Tariff
Act, 1985.
4. Sh. B. Lakshmi Narasimhan and Shri Amar Pratap Singh, Counsels of
the applicant appeared and reiterated the grounds of the determination
application. Counsel submitted that the items under determination can
be covered under entry no. 41A of Schedule III appended to the DVAT
Act,2004. His submissions are as under:
(i) As per the McGraw-Hill Dictionary of Scientific and Technical
Terms, fifth edition Liquid Crystal Display means a display that
consists of two sheets of glass separated by a sealed-in, normally
transparent, liquid crystal material; the outer surface of each
glass sheet has a transparent conductive coating such as tin
oxide or indium oxide, with the viewing side coating etched into
character-forming segments that have leads going to the edges of
the display; a voltage applied between front and back electrode
coatings disrupts the orderly arrangement of the molecules,
darkening the liquid enough to form visible characters even
though no light is generated. The term LCD panels, stands for
Liquid Crystal Display Panels, which are used for both LCD TVs
and LCD Monitors.
(ii) In the instant case, the LCD Monitors sold by LGEIL is based on
the same liquid crystal technology for more clarity and effective
use.
(iii) Similarly the 'LED' technology is used in LED monitors. As perthe McGraw-Hill Dictionary of Scientific and Technical Terms,fifth edition LED is defined as 'light emitting diodes', asemiconductor diode that converts electric energy efficiently intospontaneous and non-coherent electromagnetic radiation atvisible and near i~frared wavelengths by electroluminescence at aforward -biased.
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(iv) Therefore In instant case LCD and LED technology is used in
monitors. These monitors manufacture~ for use with automatic
data processing machines like computers.
(v) It is submitted that the LCD and LED monitors manufactured
and sold in NCT of Delhi are classifiable under entry 41A of
Schedule III of DVAT Act. Relevant portion of Entry 41A of the
Schedule-Ill of the DVATAct read as follows:
"41A. Information Technology products as per the description in
column (2) below, as covered under the headings, or sub-
headings mentioned in column (3), as the case may be, of the
Central Excise Tariff Act, 1985 (5 of 1986).
S1. DescriptionNo.
CentralExciseT~!"iff
Heading(1) (2) (3)
3. Automatic data processing machines andunits thereof, magnetic or optical readers,machines for transcribing data onto datamedia In coded form and machines fOTprocessing such data. Analogue or hybridautomatic data processmg machine,Electronic Diaries, Portable digital automaticdata processing machine, personal computer,computer systems including personalcomputers, other Digital automatic dataprocessing machines comprising in the samehousing at least a central processing unit andan input and output unit whether or notcombined, micro computer / processor, large/ mainframe computer, computer presentedin form of systems, digital processing units,storage units, input units, output units.Teletypewriter, Data entry terminal, LinePrinter, Dot matrix printer, Letter qualitydaisy wheel printer, Graphic printer, Plotter,
I Laser jet printer, Key board, Monitor, storage
8471
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units, floppy disc drive. Winchester / harddisc drives, Removal / exchangeable discdrives, magnetic tape drives, Cartridge tapedrive, other units of automatic dataprocessmg machines, Uninterru pte d powersupply units (UPS).
(vi) It is submitted that the LCD and LED monitors sold by Dealer are
classifiable under of clause (3) of Entry 41A of the Schedule - III
of DVATAct as 'monitor'.
(vii) Entry 41A (3) of Third Schedule of DVAT Act is aligned with
Central Excise Tariff Act, 1985 ('CETA') and refers to entry 84.71
Here it is relevant to note that Entry 84.71 under CETA has been
amended with effect from 1st January, 2007. However,
consequential amendments have not been made in the Third
Schedule of DVATAct.
(viii) For the purpose of interpretation of entry 41A(3); certain notes
have been provided under Entry 41A of the Third Schedule. The/
Notes of interpretation as given under Entry 41A clarify as to how
the reference to entries under Central Excise Tariff Act, 1985
('CETA')should be interpreted ..
(ix) Therefore entry 41A (3) of Third Schedule should be interpreted in
the light of the Rules of Interpretation given under CETA and the
note of interpretation given under Entry 41A.
(x) Note 1 to entry 41A provides that the Rules for the interpretation
of the provisions of the Central Excise Tariff Act, 1985 read with
the Explanatory Notes as updated from time to time published by
the Customs Co-operation Council, Brussels apply for the
interpretation of this entry and the entry number 84 of this
Schedule.
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(xi) Note 2 to Entry 41A of Third Schedule, provides as follows:"Note:- (2) Where any commodities are described against any
heading or, as the case may be, sub-heading, and the description
in this entry and in entry number 84- is different in any manner
from the corresponding description in the Central Excise Tariff
Act, 1985, then, only those commodities described in this entry
and in the entry number 84 will be covered by the scope of this
notification and other commodities though covered by the
corresponding description in the Central Excise Tariff will not be
covered by the scope of this notification."
(xii) Note 3 to Entry 41A of Third Schedule provides as follows:Note:-(3) Subject to Note (2), for the purpose of any entry
contained in this notification, wherein the description against any
heading or, as the case may be, sub heading, matches fully with
the corresponding description in the Central Excise Tariff, then all
the commodities covered for the purposes of the said Tariff under
that heading or sub-heading will be covered by the scope of this
notification.
(xiii) Note 4 of Entry 41A of Third Schedule provides as follows:Note:-(4) where the description against any heading or sub-
heading is shown as "other", then, the interpretation as provided
in Note 2 shall apply.
(xiv) Entry 41A(3) of the Third Schedule of DVAT Act does not
correspond exactly to the entry given under CETA. However,
monitors are specifically mentioned in the CETA and also in Entry
41A (3) and hence satisfy the relevant entry portion of tariff
heading 8471.
{xv) Note 1 of entry 41A shall apply in the instant case and the scope
of the goods mentioned in Entry 41A should be determined on the,-
basis of Rules for interpretation of the provisions of CETA read
with Explanatory notes as updated from time t.o,:~-ime·'Rublishedby. ""', . '. ",
,/,- i"\",'>\~ "-·1" j
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the Customs Co-operation Counsel, Brussels (now the World
Customs Organization (WCO).
J.'iff
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5 . The DR appearing on behalf of the department stated that the above
contention of the applicant as mentioned at '(xv)' above is not correct
and Note No.1 of Entry NoA1A shall not apply in the instant case.
The DR further stated that the item under consideration has already
been determined under section 84 of the Act, in the case of NEC India
Pvt. Ltd., New Delhi, vide order No.204/CDVAT/2008 dated
08/07/2008. Hence, as per sub-section 8 of section 84 of the DVAT
Act, 2004 the present application is' not maintainable and should be
rejected.
6. I have heard both the sides and of the considered VIew that the
application is not maintainable since the item under consideration has
already been determined under section 84(8) of the DVA1 Act, 2004 and
I, therefore reject the same.
<.(Prashant Goyal)
Commissioner, VAT
Copy for information and necessary action to:1. Applicant2. Addl. Commissioner (Law & Judicial)3. Addl. Commissioner (System)4. Value Added Tax Officer (Policy Branch)5. President, Sales Tax Bar Association (Regd.)6. Guard File
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